Waiver of fees post payment of fees
Overview
A waiver of fees post payment of fees refers to a scenario in which the borrower pays a fee in a loan, but also qualifies for a waiver or refund of that fee. When a fee waiver is granted after the payment of fees, the principal amount of the loan is adjusted downwards from the date of the waiver. The Interest amount is also adjusted accordingly to reflect the reduced principal amount. This means that the borrower is not required to pay interest on the portion of the principal that has been waived off.
The ability to waive fees post payment of fees and adjust the principal and interest amounts accordingly provides more flexibility and support for borrowers who may be experiencing financial difficulties.
There are two types of waiving charges supported in Q2 Loan Servicing.
Partial Waiver – By selecting partial waiver fee, marking the request as partial waiver, and mentioning the amount charged with respect of dates are waived off.
Full Waiver –By selecting full waiver fee, all uncleared charges are waived off in one request.
This feature only supports the full waiver of the paid fees, and with Adjustment Entry flag for IPT and Non-IPT loan.
Prerequisite:
The following is a prerequisite to waive a charge:
If the waiver type is Principal, then the Adjustment Entryflag needs to be enabled.
Steps to waive fees:
Log into your Salesforce account.
Click CL Contracts and create a new contract.
Go to Loan quick menu.
Click Loan actions.
Click Waiver Actions.
Click Waiver Type and select Paid Charge Waiver.